MANILA, Philippines — The country’s agricultural sector slowed down in the first quarter, growing by only 0.67 percent due to El Niño which affected the production of some crops.
Local farm output rose 1.08 percent from January to March 2019.
Production increases were noted for livestock, poultry and fisheries, while the crops sub-sector recorded a decrease in output.
“The decline was expected because of the drought which is why we are really pushing for the implementation of small and sustainable irrigation projects,” Agriculture Secretary Emmanuel Piñol said in a text message to The STAR.
Piñol is not expecting any further slide in the overall performance of the sector despite the ongoing El Niño.
“No [further decline] because there was a marked increase in rice harvest in three regions which would more than make up for the damage caused by El Niño,” he said.
The agricultural sector, at current prices, grossed P429.7 billion in the first quarter, down three percent from P443.5 billion.
Crops output, which accounted for bulk of the total agricultural production, went down by one percent with palay (unhusked rice) decreasing four percent.
Palay production fell to 4.42 million metric tons (MT), while corn production went down to 2.43 million MT.
The decline was attributed to the adverse effects of the dry spell in major rice-producing areas. It was also affected by the damages due to typhoons at the tail end of 2018, resulting to lesser area harvested and lower yield.
At current prices, the crop sub-sector grossed P235.4 billion, down six percent year-on-year.
The opening of the rice industry to more imports following the rice liberalization law has led to the continued drop in prices of local palay.
Production decreases were also noted among the major crops particularly banana, pineapple, coffee, mango, tobacco, peanut, cassava, garlic and rubber.
Meanwhile, livestock production, which comprised 17 percent of the aggregate output, inched up 1.25 percent. Gross earnings slightly went down 0.25 percent to P75.4 billion.
PSA said the increase was due to higher hog production, sustained demand for meat processing and hotel and restaurant industries.
Poultry likewise increased 5.41 percent, representing 17 percent of the total agricultural output.
The expansion of broiler farms capacity, resumption of farm operations, opening of new commercial broiler farms and higher demand from food establishments contributed to the growth of the sub-sector.
Gross earnings in the sub-sector declined four percent to P55.4 billion.
Both the livestock and poultry sub-sectors posted decline in prices amid surplus in production coupled with imports, which eventually choked the market with excess supply.
On the other hand, the fisheries sub-sector, which made up 13 percent of total farm output, increased 0.97 in volume while value grew eight percent to P63.5 billion.
The sub-sector has been steadily improving since the latter part of 2018 due to good weather conditions.
Meanwhile, average farm-gate prices went down 3.76 percent with price decline recorded in all sub-sectors except fisheries.